UP Govt Waives Off Road Tax On Hybrid Cars, Prices To Go Down | Here's How Much Buyers Can Save

The move by the Uttar Pradesh government to waive off road tax on hybrid cars is expected to reduce prices of such vehicles by leading automakers Maruti Suzuki and Toyota.

The exact quantum of reduction in the taxes is not revealed in the notification that informed of the waiver. However, reports say that a 100 per cent rebate is being offered.

The tax waiver will reduce the overall cost of cars for buyers, making hybrid vehicles an attractive option in the market.

A hybrid car uses more than one means of energy, combining a petrol or diesel engine with an electric motor, with the two systems working with each other to move the vehicle. This allows the car to burn less gasoline, achieving better fuel efficiency than a traditional engine that solely uses fuel does.

Hybrid Car Prices To Go Down

Maruti Suzuki, maker of the popular hybrid cars Grand Vitara and Invicto, and Toyota, which has introduced the hybrid technology in models such as the Innova Hycross and Urban Cruiser Hyryder, may see an increased sales with the Uttar Pradesh government's move.

The average registration cost for the hybrid trims of the Grand Vitara and Urban Cruiser Hyryder is close to Rs 1.80 lakh in Uttar Pradesh, as mentioned in an NDTV report. Thus, a significant cut in the on-road prices of these SUVs is on cards with the road tax waiver.

Toyota Innova Hycross and Maruti Invicto buyers can get a cost cut of up to Rs 3 lakh in the on-road prices, depending on the variant of the car.

As this is an amendment to the state's existing EV policy, the relaxation in registration cost will be valid till October 2025, the report said.

"Waving off 100 per cent road tax on strong hybrid vehicles is a milestone decision by the Uttar Pradesh government which will encourage adoption of these environment friendly vehicles. At Honda Cars India, we welcome this move, as it will undoubtedly attract a larger set of customers to join the nation's green mobility mission," the report quoted Kunal Behl, Vice President, Marketing & Sales, Honda Cars India Ltd.

Other states could also follow suit and result in a big push to hybrid vehicles, which are considered the sustainable substitute for petrol and diesel cars.